A B.C. Supreme Court judge has certified a class action lawsuit against Canaccord Capital Corp., one of its brokers and accused fraudster Gary Stanhiser, in the Excell Asset Management Inc. case.

William Gerber and Jon Oskenholt sought class action status for their suit against Canaccord, broker John Johnston and Stanhiser. The suit concerns Stanhiser’s scam to raise funds in Canada and the U.S. to buy shares in various junior companies by way of private placements without complying with B.C. securities legislation.

Prospectuses were not issued to the investors and very few of the investments were for the $97,000 or more, which is the minimum in B.C. for private placements. Some of the funds were allegedly siphoned off through Stanhiser’s various companies.

The plaintiffs are pursuing a claim of fraud against Stanhiser, and negligence, tortious conspiracy and breach of trust against Johnston and Canaccord. No claim in fraud or negligent misrepresentation is pursued against Johnston and Canaccord.

Johnston and Canaccord entered a joint statement of defence. Stanhiser has not entered an appearance, nor did he appear.

Gerber has been appointed as the representative plaintiff for those class members resident in B.C.; and Oksenholt has been appointed as the representative plaintiff for those outside of B.C. The deadlines are July 30, for B.C. residents to opt out and August 15, for non-B.C. residents to opt in.